The Grade 10 Accounting Noteset is an essential tool for students studying basic accounting concepts. With colorful illustrations and clear explanations, this set contains all four quarters of work in one concise package. Each section contains examples to aid in understanding and retaining the mate...
NON-OPERATING ASSETS Dr. Withdrawals Cr. NON-CURRENT LIABILITIES
+ -
Tangible / fixed assets (to be paid back over 12
months)
• Land and Infrastructure
• Equipment • Mortgage loan
Dr. Capital Cr.
• Vehicles • Loans
+ -
Financial assets
• Fixed deposit (longer than 12 CURRENT LIABILITIES
months) Dr. Expenses Cr. (will be paid back in less than
+ - 12 months)
u Cost of sales
CURRENT ASSETS u Interest expense • Trade creditors
u Rental expense • Overdraft Bank (Cr.)
Inventory
u Salaries and loans • Short term portion of
• Trading inventory u Stationery loan
u Fuel
u Packaging material
Trade and other receivables u Repair work
u Insurance
• Debtors control u Advertisements
u Discount granted
u telephone
Cash and cash equivalents u Water and
electricity
• Bank (Dr.)
Dr. Income Cr.
• Petty Cash
- +
• Cash float
u Sales
• Fixed deposit (less than 12
u Current Income
months) u Interest income
u Rent income
u Discount received
100
1. Cost price Sale price x
100+%
100+%
2. Sales price [cost price + profit margin] Cost price x
100
Selling price - Cost price 100
3. Profit margin (margin) x =%
Cost price 1
100+%
4. Sales Cost of sales x
100
100
5. Cost of sales Sales x
100+%
EXAMPLE OF CALCULATIONS
[GENERAL ACCOUNTING EQUATION > GENERAL LEDGER]
[effect on the accounting equation]
1. Office equipment purchased.
>Equipment (A)
>Bank (A) [we bought the equipment in cash SO our bank is reducing]
ACCOUNT Dr. ACCOUNT Cr. ASSETS OWNER'S INTEREST LIABILITIES
Equipment Bank
[Increase [Assets REDUCE +
0 0
assets on the on the credit -
debit side] side]
2. Water bill paid.
>Water and electricity [Issue > OWNER'S INTEREST -] (E - ) DEBIT EXPENSES
>Bank (A) [pay the bill with cash]
ACCOUNT Dr. ACCOUNT Cr. ASSETS OWNER'S INTEREST LIABILITIES
Water and Bank
- - 0
electricity
3. Rental income obtained [> OBTAINED].
>Rental income [Income > OWNER'S INTEREST +] (E + ) CREDIT INCOME
>Bank (A) [we MONEY GET IN > our bank INCREASES]
ACCOUNT Dr. ACCOUNT Cr. ASSETS OWNER'S INTEREST LIABILITIES
Bank Rent income
[Increase [Owner's
+ + 0
assets on the interest
debit side] INCREASED on
the credit side]
4. Stationery purchased.
>Writing needs = EXPENSE (E - )
>Bank (A)
ACCOUNT Dr. ACCOUNT Cr. ASSETS OWNER'S INTEREST LIABILITIES
Stationery Bank - - 0
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